Welcome to the new Candlestick Forum forum. This is now going to be a monitored forum. The new technology has made it possible to be alerted to when a new post has been put in the forum. It will immediately create an email to myself and the staff. The activity that was supposed to have been occurring in the old forum will now be much better due to the automated processes. So start asking away.

[quote="candlestick1"]Welcome to the new Candlestick Forum forum. This is now going to be a monitored forum. The new technology has made it possible to be alerted to when a new post has been put in the forum. It will immediately create an email to myself and the staff. The activity that was supposed to have been occurring in the old forum will now be much better due to the automated processes. So start asking away.[/quote] How do you determine support and resistance lines?

using the concept that Dave Elliott has applied to the moving averages, the moving averages themselves are the spots to start looking for support or resistance. At the moving averages, if you see a candlestick reversal signal, that is strong evidence that the moving average level is an important level that other technical investors are watching.

Sometimes it is difficult to find resistance and support areas on your charts because of the "noise" on the chart. By changing to a line chart, you can get a better feel for the peaks and valleys on the chart. Then connect the valleys to other valleys and the peaks to other peaks, change back to a candle chart, and you'll be amazed at how accurate this is in helping you find resistance and support levels. A word of caution, however. Line charts will not show shadows -so you'll have to play with it for awhile. And remember, whenever you see a tall white candle and a doji in an uptrend, the highest point of the two will most usually be resistance. Candles excel at pinpointing resistance and support. Your major reversal patterns by definition will create their own resistance and support levels, and doji and spinning tops often telegraph R&S areas. Hope this was helpful.

yes, 6iron is correct, drawing a line through the previous peaks or bottoms is the lines that are going to be obvious to everybody that is trying to find the support/resistance areas. The obvious is usually where everybody else is watching.